Which of the following statements is not an example of the use of persuasion to correct (or adjust for) an externality?
A. Maggie asks her neighbor to keep his dog quiet at night.
B. An environmental group conducts a sit-in at a chemical factory to demand that the firm stop polluting rivers.
C. A judicial court imposes a fine on a reckless driver.
D. All of the above are examples of the use of persuasion to correct (or adjust for) an externality.
Answer: C
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What will be an ideal response?
The increase in bank supervision in the U.S. in the 1980s and early 1990s was due to an increase in bank
a. profits. b. ownership of common stocks. c. failures. d. deposits and loans.
Premiums based on experience ratings:
a. are illegal in most states in the U.S. b. vary depending on the income of the insured. c. are uniform across age groups. d. are only used in property-casualty insurance underwriting. e. are based on the loss experience of the insured group.
In the United States, most of the government's taxing and spending is
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